Fact Pattern: Barnes Company has two support departments and three production departments, each producing a separate product. For a number of years, Barnes has allocated the costs of the support departments to the production departments on the basis of the annual sales revenue dollars. In a recent audit report, the internal auditor stated that the distribution of support department costs on the basis of annual sales dollars would lead to support inequities. The auditor recommended that maintenance and engineering hours be used as a better support cost allocation basis. For illustrative purposes, the following information was appended to the audit report: Support Departments Production Departments Maintenance Engineering Product A Product B Product c Assume that Maintenance hours used 400 800 200 maintenance 200 Engineering hours used 400 800 400 costs are 400 Department direct costs allocated first $12,000 $54,000 $80,000 $50,000 $90 poo because the Maintenance Department provides a greater percentage of its total support to the other support department. Using the step-down method of cost allocation, what amount of engineering cost is allocated to Department C? A. $6,000 OB. $28,500 C. $14.250 OD $0